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tv   After the Bell  FOX Business  October 15, 2014 4:00pm-5:01pm EDT

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10-year yield. [closing bell ringing] the transports which had gotten hammered. as bells ring, the transports see a gain of about 21 points. let's see how your stocks and money finished up. dow jones industrials coming off a very deep cave of a floor. down as much as 460 points. down not nearly as bad, down 172. russell, one point of green, up about 11 points. a big comeback there. look at nasdaq. david: exact mirror. 1.06 for the dow. up 1.06 for the russell up. liz: nasdaq had another 100 added to that earlier. so much more to discuss with netflix earnings coming. "after the bell" starts right now. david: what a day to have you with us and it ain't over yet. we have got a lot to talk about.
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the dow is down 173. get right to today's market action. chris recognize letter of needham growth fund will tell us why he is investing in semiconductor equipment companies. but is he still after today? we'll find out. ryan deet trish -- dietrich will tell us why you should invest in financials. maybe bargains. jack mcintyre, brandywine global, will explain why we saw the treasury yield drop to unbelievable lows. todd horowitz, in pits of cme. we usually laugh about the fact you're the bear when you're on the market is doing well. it did come up from the lows. it was down 460 points at one point on the dow. look at it now. down 173 points. still a major selloff, but russell 2000 was up a percentage point. what do you make of this market? >> hi david, hi liz. i think the market showed some resiliency which is good. i hope investors out there
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didn't panic and sell at the bottom. it is very important to understand the difference between when you're investing and trading. what i thought was interesting, was the treasury bond market. 10-year dipped under 10%. that might be pretty good news. we might free up housing liquidity. fed loans money out of the to the strategist. which would be better for housing. it was a nice comeback. i still think we have a lot of work to do to the downside. i don't think we're out of the woods. i think dip buyers were able to lift buyers off a real can pittation area down towards the bottom. liz: chris, you're calling this actual move healthy. you talked to us when it looked worse. is it healthier shakeout when we have fewer points off the board here? >> i think the day was healthy that we were able to come back from the lows. it is shaky now, as we thought september, october would be higher level of volatility. we certainly saw that today with the vix north of 30.
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liz: hold on one quick 2nd. we have netflix numbers. tracy byrnes you have them. how did they do. >> street was expecting 93 cents. came in at 96. revenue on the other hand, came in as expected $1.41 billion. the stock has been flat over three years. at this point they're not doing so great. they don't think competition is an issue. david: big drop after-hours. liz: flat over three months i think. we're seeing a move much lower after-hours. that could have something to do with time warner's hbo announcement and competition over there at that point. back to you, chris rents letter. we apologize. go ahead. >> we see this as opportunity. i don't think you need to run out and buy stocks hand over fist at this point. one things we have as a fund specialty we're able to short. i would be looking covering some shorts here. taking some of that hedge off and looking for good
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opportunities. you mentioned semicap equipment. we think that is probably going to be a pretty good opportunity going into the end. year setting up for 2015 investment. we're longer term investors so that is the type of opportunities we're looking for here in this market. david: ryan, i will be talking later on with jon hilsenrath about the richard fisher interview i did earlier this morning. he talks about a lot of things. one of the things he says, he says a healthy market, i'm quoting a healthy market can withstand a market selloff. the market correction doesn't mean the entire economy is in trouble. is he on the mark there? >> i would sure think so. when you talk about it, what is going on now, october historically is the most volatile month. we had 11 trading days in october, seven moved up or down 1%. we had only 20 coming into october. this is volatility is normal. september, little dip, 9% or so, this good correction more than i
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expected but now we see the levels of fear. 44% of the people were polled in the investor intelligence polled looking for correction. a lot of people all of sudden looking for correction. from the contrarian point of view down mean we bottomed today. small caps led three straight days kind of quietly. those are steps in the right direction here. liz: did we take a little bit of a stumble back with the bond market behavior? don't mean to keep coming back to this but jim mctire, to see the yield go below 2% and people going into treasurys and when we were making a comparison earlier, intel's yield, and that's a company that has opportunity to move higher and the stock is 2.8%. why go into treasurys when a name like intel or pfizer, throw out anything in there? >> okay. so you raise an interesting point but when you look at treasurys relative to japanese government bonds, relative to german bunds, boy, they look pretty attractive.
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liz: sure. >> one things we take into consideration, there is a lot of global capital out there. it is looking for a home. right now, treasurys continue to look look attract relative to some of those other key developed bond markets. david: todd horowitz, talk about the fed for a second. earlier today, when the market was really going down like 300 points and more, we heard talk about qe, the possibility of the fed getting into another qe, stopping its tapering, going back into buying more bond. richard fisher wanted to squelch that rumor entirely and that's one reason he agreed to talk to me on the record to say it wasn't going to happen. do you think he speaks for the whole fed or might they possibly get back into another qe stance? >> there is always a possibility. i hope richard nicher -- fisher speaks for the whole fed. that is what we wanted to do all along. we need to raise rates.
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enough, enough of free money. i hope he is telling it right. the only way we see the economy grow instead of house of wards, the market will correct. so what? we'll rally back. we're up 200% from the russell. up 15% in the russell. that is certainly not a crisis. let free markets trade. let richard fisher tell it like it is. the own way to get out of mess, rates have to rise and liquidity has to trickle down to everybody including the average joe. liz: i have to say that gets very traderresque. qualcomm bought a u.k.-based chip company. and of course i'm looking at chris, you like semiconductor equipment-makers, correct? then you have intel coming out with a phone that turns into a tablet. there was some action in that world yet the prices are cheaper than they were 72 hours ago?
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>> we see higher capital intensity in semiconductors. that is the play for 2015 as foundries go out and spend excess amount of money to get to the smaller nanometer which use lower power which helps the cell phone, helps a lot of our mobile devices. that's the goal. you get there by spending a lot of cap x in these foundries. there is lot more processes. companies like asml will be developing euv help us bet there. it is a a longer term secular growth story. it we have bumps early in the season in that group. for 2015 if you're long term investor that is where i would be right now. liz: okay. david: ryan, financials were hit hard today. richard fisher said about financials, look these guys got plenty of liquidity. they don't need anymore liquidity the that is the reason he said we don't need to print
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money. 2.$6 trillion is waiting in federal reserve vaults in reserve fund. they have plenty of cash, they have plenty of liquidity. why were they in trouble today? >> today more sell the news mentality. we had big earnings. let's be honest david, they held up well. liz: ryan, so sorry, your turn to interrupted. tracy byrnes with news. >> we're getting from "the dallas morning news." apparently health care workers who were treating thomas eric duncan in the isolation health unit, did not wear protective hazard does suits two days until he had the ebola. the delay potentially exposed dozens of hospital workers to the virus. this is according to medical records, again in from the dallas morning news. liz and dave, back to you. david: very interesting. very interesting. liz: why some of companies
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making hazmat suits are skyrocketing in the stock prices. david: tremendous. liz: really an issue that you definitely need. i'm so sorry, ryan. now it is your turn to continue your thoughts, sorry. david: financials. >> sure. with financials. so they took a hit today. they're kind of one of the last groups to crack. maybe that is a sign that the overall market could finally try to get a bottom. i talk about the economy. jobs are improving. gdp looks good. earnings, making record high in earnings. looking at 10% earnings growth next year. earnings are 89% correlated with the s&p 500. earnings going up that is good. david: hold on, ryan. keep it on banks for a second. what they do for a living, they're getting their earnings, not necessarily in old-fashioned banking. they're getting earnings on other stuff. on trading. when are we going to see more loans going out? kind of a healthy banking activity? >> exactly. well hopefully sooner than later. again when you talk about the economy it's turning around. things are doing good. they are lending more than they
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were two years ago. more than they were a year ago. as more jobs come back and the economy continues to go up that is a positive. the other thing i like about the financials, they're still nowhere near 2007 highs. yes, they're off the lows but contrarian point of view. small caps were up so much. now they're pulling back. things go in cycle. they could continue outperform on relative basis for years. liz: ryan dietrich, financials. jack mack entire, so great to have your opinion on bond -- mack entire. >> what is spooking markets more, ebola concerns or concerns about economic slowdown worldwide? send us a message. what you think. send us a message on facebook or tweet us @fbnatb. liz: one strategist on this show told you back in august, charts were telling him big market swoon was on the way. he was dead on. what are they telling him now? david: someone to listen to.
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dallas fed president richard fisher, he is someone to listen to, told fbn exclusively, that money print something not, i repeat, not, on the table. that janet yellen and european central bank president mario draghi agree with him. with rising dollar and continue, will the rest of the fed go in a different direction? liz: will ebola fears intensifying, what do you do if your employees need to travel? we're speaking with a company that provide emergency medical help for its clients. they recently helped two doctors evacuate in a ebola region. ♪
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liz: this is a big one. dow component american express reporting just moments ago. let's head back to nicole petallides on floor of the new york stock exchange with axp. >> axp, a beat and a miss. earnings per share coming in at a buck 40, versus estimates of 1.36. that is the beat part. the profit looking good. however revenue numbers come in a little bit shy. revenue 8.33 billion, versus estimates of 8.35 billion. you're seeing stock looking to the downside in the bid-ask in the after-hours. american express says revenues continue to rise at steady pace but growth is over long term. loans continue to grow. that is something else that they noted. their profits topped estimates.
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we did see it come off the lows of the day. but certainly right now you can still see slightly to the downside. as i tell you, liz and dave, traders can not talk about netflix, down 23% at the moment. david: it was a tough day. things improved toward end of the day. certainly not half as bad as earlier. go to the s&p pits. todd horowitz in the pits of cme. how is it shaping up? is the optimism continuing into the overnights? >> there is a little bit of selling pressure at the end day. that is natural. there is natural there is a little selling here. remember if you're an investor and not overleveraged don't worry about big swings in the market. of focus on your portfolio. if you're a capitalist want free market economies, hope interview david did with richard fisher is correct and they will consider being more hawkish here. david: thank you, todd. good to see you. >> waves of heavy selling sent stocks tumbling with the
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dow jones tumbling 460 points in earlier trading, shortly after 1:00 p.m. before there was major trouble in the markets our next guest warnerred you and you back in august his charts were telling him a big market swoon was on the way. listen. >> the bonn market selling it us to be careful of stock market which is the same thing the trendlines are telling us which is same thing seasonally the market is telling us. a neutral to bearish stance is probably best here. david: that was in august. as we know right now he was dead on. he called it correctly. what are the charts telling him now. joining us j.c. paretz, eagle pay capital founder and president. unbelievable, you're really good what you do. what do the charts tell you now? we can show you right here? >> sure we reevaluate the market every day, every week. as we get more data it confirms our original thesis. we could get more bearish or pull back. david: here is interesting chart, junk bonds versus treasury bond. >> the reason with the clip you showed one of the reasons we're
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bearish. the bond market was not confirming the stock market. bond market was telling us to get out of way. high yield junk bonds relative to treasury bonds. highunk, more speculative, volatile, treasurys guaranteed returns. not much but a safe haven. if you're seeing speculative asset junk bonds underperforming treasurys, the big market participants are trying to hide. by the way we're making multiyear lows in this presentation. liz: explain to the people what the red line is and the gray line is. >> the red line is the uptrend from the 2012 lows. that was a monster, monster rally we had. we we broke. we like to see it, not just a trend line break we like to see support break as well. that broke. we knew it was all said and done. we've been in decline all year telling us to be careful with the stock market. bond market is smarter than the stock market. liz: if you're looking at stock market, what was giving you indication back then that your theory would play out? >> actually the stock market was telling us exact same thing.
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you could make a similar argument to the particular bond ratio we're looking at here. this consumer discrest narrowingsries compared to consumer staples. if you're money manager and need money put to work and you think the market going higher, you speculate in more aggressive names, retailers, car builders home build years retailers, coaches,. >> precisely. if you think the market is going to go lower, the way you outperform put money toward consumer staples, beer, cigarette, soda, toothpaste. things we'll be buying regardless whether the economy is good or bad. david: we saw how beaten down the russell 2000, small and mid-size caps were. today they got a break. they were up 1% at the end of the day despite the dow being so significantly down. if you compare the overall s&p 500 to the smaller caps you get interesting stuff too, right? show that stuff. >> same exact psychology. if money is going to be put to work and they want market to go
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higher, they i the market is going to go higher, small caps will outperform, small caps, mid-caps, micro caps. we've seen exactly complete opposite. david: the green is big caps. this is the large cap sector. you see how poorly in comparison the microcap and small caps have done, yellow and blue. >> precisely. there was real risk appetite out there you want to see, yellow, blue, green line outperforming and orange line outperforming green. unfortunately we saw complete opposite. that was telling us to be careful. david: you saw a bear market coming or just a selloff. >> remember, weight of the evidence. the bond market sell telling us one thing. staples and discretionary telling us one thing, is this telling you a bear market or selloff. >> some say we're in a bear market. frankly sitting i think we're going a lot lower. i think s&p 500 we could see 200 points to the downside absolutely. s&p 500 as we speak. not only represents uptrend line from the 2007 lows which is kilo
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and blue line represents uptrend line from 2009 lows. some argue that was generational low. maybe it isn't, maybe it is. we've now broken those. the only thing that can make me more market neutral as structurally bearish as i am, close above 1905. if we get back above there, i think by the way that is lower probability outcome but we like to keep open mind if we get back above there. i will get neutral but otherwise i think we're going a lot lower. >> day it closed 1862. david: congrats on the forecast. spot on. >> thank you. >> dallas fed president richard fisher told me it is too early to think about another round of qe. will selloff and threat of global economic weakness lead other members fed to think about printing even more money? we'll ask "the wall street journal"'s jon hilsenrath. liz: plus as the fear of ebola spreads, what are companies doing, what are you doing if your employees are traveling to
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regions that could put them at rick of contracting the deadly disease? we have the company that provides emergency medical help for clients. david: and volatility is taking its toll on a lost hedge fund so how is the industry repositioning its holdings? we'll be asking anthony scaramucci of skybridge capital, the man who knows it all. he's coming up. ♪ (receptionist) gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label
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david: in a phone conversation i had with dallas fed president richard fish he said they don't
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inconclude another round of money printing. he said says a market correction doesn't mean the economy is in trouble. he said bottom line there is limit to what monetary policy can do whether me, janet yellen, head of european central bank, or governor of india we don't need more monetary stimulus. do the other fed members share richard fisher's view about another qe? we have jon hilsenrath, "wall street journal" key economics correspondent who knows a lot more about the fed than i do. jon, i know there is division. we should mention, fisher was one of two dissenters in the last meeting. he is known as a hawk. whether or not we have another qe, we stop the tapering and go in the other direction, he is pretty adamant that most fed members agree with him. do you agree? >> i think there are two important points to make. one is that you know, just yesterday we had the president of the san francisco fed, john williams, saying in an interview, with reuters, that,
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if there is serious inflation, they would consider doing more qe. one of the things happening, fisher is responding in part what he is seeing and hearing from other people at the fed. having said. that you, you know, i think this is one of those keep calm and carry on moments. i think fisher's point reflects that. keep in mind what is happening with the u.s. economy. the job market is doing pretty well. it has been outperforming fed expectations. unemployment is coming down. in the third quarter, even though we had weak retail sales numbers today, looks like we're getting growth in excess of 3%. so i don't think that the fed is anywhere near hitting panic buttons. i think panic buttons have to be hit in europe right now, where they're very close to deflation. we think there are divisions at fed, it's a total mess at ecb. and that is something mario draghi is having a very hard time dealing with.
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david: he did mention the european central bank and specifically said most central bankers say that, that monetary policy alone can't do it. , whether me, janet yellen or head of european central bank. he is specifically saying that mario draghi is against sort of a qe program for europe. >> no, no. that is actually not quite accurate. david: hold on a second. that is what he told me. i'm wondering if what he says is true? >> let me put it in perspective. all central banksers i think agree they do do not do everythg and draghi has been actually begging european politicians, for instance, to cut taxes. david: right. >> he thinks they need fiscal stimulus. think they all agree they can't do everything but, draghi said very clearly, when he was in washington for imf meetings, ecb will do more if it has to fight deflation. he has a real battle on his hand with people like, the german bundesbank about getting agreement on doing this but he
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signaled pretty clearly he will do qe if they get into a more deflationary environment. david: all right. well he does say, he does say it is up to the politicians to make government reforms necessary to pure growth. >> yes. >> i think on that they all agree. most central banks. >> they agree on that. >> talk about the u.s., bring it back home. one thing he is saying, there is -- if we do have another qe it would be redundant because we already have plenty of liquidity in the banks. he says, why with we want to ease more when the 30-year bond yield is below 3%? that would be unnecessary easing. we're holding 2.$63 trillion of excess bank reserves now. the banks have enough money to lend, so why would we want to add more liquidity? >> right. so, you know, i think most people at the fed see another round of bond buying, qe, as they call it, as their break the glass plan. you know, if we get hit by some shock, the economy looks like it is going back into recession, right now, consumer prices are
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1 1/2%. if they get down to 1% or lower, you know, the reason they were talking about doing this because they don't have anything else. they think that it has some benefits. and you know, especially in an environment where the rest of washington doesn't really respond to crises. you know, i think the fed feels obligated to try something in that kind of environment. we're not near there. like i said, i think fisher and a lot of other people at the fed would agree. u.s. economy looks like it is getting better. hey, talk also about commodity prices coming down. that is actually not such a bad thing. david: that's right. >> that is tax cut for american households. americans -- david: he said exactly that today, you're absolutely right. he said the stock market loves ritalin. they have had enough ritalin. the other factors will take part. the market will correct itself. we have to leave it at that. thank you, jon hilsenrath from the "wall street journal." liz? liz: david, the world health
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organization expects to see 10,000 ebola case as week by december. so how can companies protect employees who must travel abroad? we have a medical assistance company that has the term sos in its title. that is coming up next. at its low today, the dow was down 460 points. that is the largest intraday drop in more than three years. how damaging is the recent volatility to hedge underfunds specifically? we are coming up talking to anthony scaramucci. massive recall of toyota of 1.6 million cars. is your car on the list? we have details soon. straight that he had. ahead.
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honey, haven't i asked you to please use the.... >>we don't have a reception entrance. ship a pak via fedex express saver® for as low as $7.50. david: s&p 500 slumped more than 8% since the record close on september 15th a few stocks that bucked the trend rallying since the selloff. vertex pharmaceuticals jumped 9% from september 18 to october 13. so far this year it is up 43%. next real estate investment trust ventas, which post ad 8% return over same period. equity, residential, another real estate investment trust so you 7% jump. it is up whopping 30% year-to-date. clorox bucking the trend, rallying 7% from september 18 to october 13. liz: that second health care worker diagnosed with ebola overnight has exposed more than
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130 jet passengers to the virus, prior to being diagnosed. as the virus spreads, how can companies protect employees that do need to travel? international sos assistance, provides emergency medical help and advise for clients. with us, dr. robert quigley,nale vice president. this seems like a company a lot of big multinationals need to know. tell us how it works and what you do. >> well good morning, liz, or good afternoon. international sos has been around for 30 years. we're the world's largest medical assistance company. we serve over 10,000 clients around the world and those corporate clients can represent multiple different type industry segments, government organizations, non-government organization, energy,
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manufacturing, mine, energy infrastructure, scholastic, so on. many are delivered our services, medical services or medical assistance through over four million calls we manage a year. our service delivery model is decentralized, it is formulated through 27 assistance centers, strategically located around the world to serve those clients. this particular model is unique and value proposition it allows subject matter experts with local knowledge of health care or security infrastructure wherever our clients may find themselves. liz: which would really work well when it comes to what is going on in the three western african nations. let's get right to ebola. have your phones been ringing off the hook? can you give us a sense how many calls you've gotten from companies, clients, i need you to evacuate somebody or we're concerned about one of our employees? >> certainly our call volume has
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jumped log rythmicly. many in the centers we have first call desks manned by sub jack matter experts and operational and security folks because these particular segments are not mutually exclusion system i will say that the volume has been high enough, that we have been such first call desks 24-7, in many assistant centers to provide services. liz: say you get a call from company x. we have somebody in liberia. we're concerned. they have a fever. can you get them back to the united states? with all the question about how little health care workers here in the u.s. are prepared for this, are your people perfectly prepared with the correct equipment that is really needed to deal with this? >> well, in fact we are.
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our history speaks for itself. we've been through this czars and h1n1. we've been through management of tuberculosis and other infectious diseases in terms of the educational folks and also their movement. and we have moved multiple patients that have had exposures to ebola in recent months. >> those were two dutch doctors i understand it, correct? what were the circumstances? >> well those were two dutch doctors. i don't typically refer to actual cases but it was in the press and i will comment to say they were two of many patients that we did transport to had some exposure as health care providers and we followed the protocol as laid out by cd c&w ho which we're always aligned and able to transport them back to make sure none of your people were put in harm's way because of the fact we rehearse such drills and we handed off patients to the local department
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of health authorities and we monitored them for 21 days which is part of the protocol as outlined by cdc. liz: you just answered the final question. you support the protocol that the cdc has although we need to make sure other hospitals are doing that too. doctor, good work you're doing. it's a fascinating company. international sos. call them if you need help. dr. robert quickly, thanks for coming on. >> thanks, liz, for having me. liz: anytime. david: back to the markets, big hedge funds have not been compared from this market selloff. in fact talk some of them are throwing this the towel. is that true? if so, what are they selling? we'll talk to anthony scaramucci of skybridge capital. he tracks hedge fund moves minute by minute. did you see what is happening to the netflix in the past couple minutes? falling more than 26% after-hours. look at this. this is a loss of more than 100 bucks a share. actually 120 bucks a share. we have an update coming right up.
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ask your doctor about cialis for daily use so i can reach ally bank 24/7, but there are24/7branches? it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. liz: we need to revisit three big earnings releases came out at top of the hour. check on the stocks involved. netflix, first of all, shares sinking more than 26% in after-hours trade. closing value, 448 bucks. now the bid, $331. missed on eps and, eps and revenue met analyst estimates. the company reported disappointing subscriber growth. that will hurt netflix.
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it did add three million streaming subscribers, below the forecast of 3.96 million. shares of ebay down over 3% after-hours as the company cut full-year guidance. they reported on track that paypal will process one billion mobile transactions this year. they also said they're splitting off that part of the company. american express saw third quarter eps rise 12% but the company noted while revenue continued to rise at steady pace, the growth rate is still below the long term target. the stock is met flat after-hours. david: not just individual stocks, liz. turmoil in the markets is rocking big hedge fund trades. with the dow, nasdaq, posting huge loss, are hedge fund managers scrambling to change their strategy. liz: is it too late? we have anthony scaramucci, skybridge can capital partners. there are points people can get out and points where they can't
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get out. >> some also reduced beta coming into this, recognizing that markets felt a little toppy and took beta down. >> mean their risk. >> risk relative to the overall market. but you are right, are a group of hedge funds getting hammered. looking through our core portfolio, remind viewers we track 1200 hedge fund managers and certainly top 100, liz, some are get hammered. some are down 10, 12, 20%. liz: what is hurting them. >> their focus is typically something equity related and levered long to equity markets. a lot of those guys are in the process david and i were talking about at the break. expecting redemptions. selling ahead of redemptions is causing negative momentum. you're getting some of that negative momentum right now. david: let's put viewers minds at ease about something because it was partly redemptions in 2008 and 2009 that really
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spooked the market but what's very different about now from then, and richard fisher talked to me about it today, there is so much liquidity in banks. for it to spill over, the banks would have to have a liquidity problem in 2008. they don't have that now. they have 2.63 trillion just sitting in the vaults in the fed. >> remember they had access to the fed window. they can open up discounted window at zero. the banks are very well-capitalized. david: even if there are redemptions by hedge funds and other institutions it will not spill over into the entire financial world? >> the leverage ratios are down on a relative basis but specifically in the banks, they have done a great job of recapitalizing. over the last three years -- david: if they're forced by the fed and our treasury. >> they have had the volcker rule take out proprietary trading. so you're not going to get hammered in the banks the way we've gotten hammered in the past. having said that -- liz: david's premise, what about the hedge funds?
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>> let's talk about that. liz: there are trillion dollar hedge fund -- >> not one hedge fund in the 2008 crisis caused that crisis. most of these things are self-owned, self-managed. the portfolio manager of the hedge fund has their own capital in the fund. so you didn't see a tarp recipient in 2008 on the hedge fund side. now we've had blowups in the hedge fund market. liz: long-term capital management. >> long-term capital. long-term capital 11 years ago did affect the markets and required some fed intervention. there is not one hedge fund out there, liz, that i can look to has the size andscape and capability of long-term capital. david: i have to ask you, i saw you talking this morn about qe you. you say if things look very bad and dire if economic weakness spilled over into the u.s. economy you expected there to be another qe you heard richard fisher say, no way, it ain't going to happen. >> let me tie that into something. i had lunch with president obama last tuesday. david: richard fisher is more powerful than president obama.
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we joke about that. >> could be more effective. only operating portion of the government the federal reserve. what the president said about ebola he thought the thing was contained and he thought the disease is so see effective it kills the host before it starts to spread. he told people to get flu shot as opposed to be worried about ebola. what is the president supposed to say? be worried? he will not do that and cause national panic. what is richard fisher going to say to us here at fox or to the public markets? we're going to move the qe, radically change direction what we're doing right now snuff to understand the federal reserve's credibility is at risks here. the economy is way slower than they originally anticipated. the global economy is way slower. the specter of deflation, particularly in japan and europe is way worse than they thought. it is now being imported into the united states. but they -- david: meaning by the way qe is not working! >> well you could argue that. you could argue that. david: working to strengthen the market but not the economy. >> i would take the position they have done a masterful job
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at fed level. they haven't gotten any help from the federal government, from the congress, pro the president. david: that's true. >> we're wait operating the united states on continuing resolution for the last six years. that is ineffective politics. liz: anthony, thanks to you. apropos of president and ebola he is expected to speak in a few minutes on that. good to see you. >> they will calm people down, liz. that is their job. david: by the way, richard fisher did a little calming. the said the economy is okay. the economy can with stand market. >> many managers will move into the energy and mlps. that is where the shift happens the next few months. liz: you said it here. with so much volatility in the markets that just won't quit at least for now, what are retail enhave investors really concerned about? are they moving their money or hanging tough? david: building a custom vacation home, everybody's dream until it is built in the wrong place. we'll tell you about a couple facing a serious beachfront blunder. you have to hear about this coming up. >> hi, everybody, i'm
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gerri willis. coming up on my show at the top of the hour, we have full coverage of all the latest news on ebola. plus is there a quick and easy way to detect ebola? yes, there is. so why aren't we using it? it is coming up on "the willis report" in just a few minutes. you pay your auto insurance premium every month on the dot. you're like the poster child for paying on time. and then one day you tap the bumper of a station wagon. no big deal... until your insurance company jacks up your rates. you freak out. what good is having insurance if you get punished for using it? hey insurance companies, news flash. nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. liberty mutual insurance.
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david: got to take a deep breath today because investors experienced a stomach-churning month. what is the greatest concern on people's mind? what is the best way to manage your money in very volatile market? liz: our own jeff flock went to fidelity branch on michigan avenue, high rent district in chicago to find out what is on investors mind. hi, jeff. >> liz, and david, at fidelity branch and td ameritrade behind me. it was a wild ride, stormy day as perhaps you can tell here in chicago as well as in the market. if you didn't talk to your investment counselor today we were listening for you. this is the speech i heard from multiple fidelity counselors to people concerned today. number one, they said 10% correction in progress and expect it to get worse before it gets better. so they weren't pulling any punches with people. they said ebola was a good excuse for this to happen but they do not expect ebola to be a big problem down the road.
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that is what they're telling people. they said buying opportunity. think january, fire-sale but think january. they also said, the fundamentals of this economy, they believe, at least that's what they're telling their investors remain positive. so don't panic. try to ride this out. they were borne out. giving market down as much as 400 points. it was born out as we went throughout the rest of the day and panic subside ad little bit. people are concerned but i would say, nobody in any of these offices came in there panicked saying, i want my money out of this market. david: good stuff, jeff flock, thank you very much. liz: thank you, jeff. toyota recalling nearly 1.7 million vehicles due to potentially faulty brakes. we have got the details on that for you coming up. david: get this. one couple's beachfront florida vacation, it turned into a $680,000 nightmare. they wanted this house. thought they were getting the right thing. why did it go sour? we'll give you details.
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david: toyota announcing it will recall nearly 1.7 million cars globally to address three separate defects. it includes one million toyota and lexus vehicles in japan an overseas and 1.2 million cars built from 2006 to october of this year. it includes older texas models. it is not currently aware of any crashes or defects as a result of today's recall. >> go "off the desk." a dream house in florida turns into a nightmare for a couple. they paid 680 grand for a house on the atlantic ocean but six months after they had it built it was built on the wrong lot! they hired keystone homes to build a three-story vacation rental. nobody noticed the mistake until the home was rented out. david: we asked on facebook and twitter what you think is speaking market, is it ebola or?
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facebook said ebola and lack after travel ban. >> glen says ebola. people will go underground to hibernate and avoid contact. the economy will falter. david: gerri willis takes us from here to the will is report. >> hi, everybody, i'm gerri willis. a big news stay today. moments from now we're expecting to hear from president obama. he is holding a cabinet meeting on the government response to the ebola crisis. we'll bring you that. as soon as the president makes his comments we'll have them also ebola taking a toll on your 401(k). one word seems to be in all the headlines, ebola. let's get you caught up. the second dallas nurse infected with ebola is on the way to emery hospital in atlanta and won't be treated at the hospital in texas where she was infected, after word she had taken a flight to cleveland one day before being admitted to isolation. we will have more on that controversy. scathing

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